Kogan 2022 half-year profit slips as sales and member numbers climb | ZDNet

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Kogan has revealed in a half-year business update that while the company experienced an uplift in total gross sales and continued to add more customers, the results were offset by declines in total gross profit and adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA).  

For 1H FY22, overall gross sales grew 9% to AU$698 million. Of that, Kogan.com contributed AU$602 million, which was a AU$16 million decline from the AU$618 million reported during the same period last financial year.

Mighty Ape accounted for the remainder of gross sales after achieving just over AU$95 million, a 380% increase on last year’s result of AU$20 million. Kogan noted that Might Ape was purchased in December 2020, and therefore the 1H FY21 results only reflected one month of performance, being December 2020.

Breaking down the Kogan.com results, Kogan Marketplace continued to make up the largest portion, achieving AU$221 million in gross sales, up nearly 29% year-on-year.

In total gross profit terms, the company reported a total 4.4% decline to AU$112 million, after Kogan.com recorded gross profit sliding 19% to AU$91 million during the period. This was offset, however, by a 300% uplift to AU$21.6 million in gross profit by Might Ape.

“Gross profit was impacted by continuing supply chain interruptions as a result of the current COVID situation and associated fluctuations in demand,” the company said.

Adjusted EBITDA also came in 58% lower year-on-year for the half at AU$21.7 million. 

The company added operational costs during the half were impacted by COVID-related interruptions resulting in increased logistic costs, adding the “business continued to significantly invest in marketing to grow the platform, achieve active customer growth and scale the Kogan First loyalty program”.

Active customers grew to over four million with more than 10% growth year-on-year in Kogan.com active customers to 3,314,000 and Might Ape had 757,000 active customers as at 31 December 2021.

Member numbers for Kogan First also jumped by 176% year-on-year to 274,000 as at 31 December 2021, the company stated.

“We have continued to re-invest in our customers through the Kogan First loyalty program to offer the best deals on a wide range of products, delivered quickly and efficiently,” Kogan CEO Ruslan Kogan said.

“After launching late last year, Kogan Delivery Services is already making an impact with more than 100,000 orders delivered directly to customers since launch. As always we’re obsessed with the long term, and our ever-improving customer experience continues to underpin business success.”

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